Information  X 
Enter a valid email address

CentralNic on track; agrees revised terms for SK-NIC

By BFN News | 09:28 AM | Friday 01 December, 2017


CentralNic Group expects to trade in line with market forecasts for the full year to 31 Dec, after adjusting for a lower-than-anticipated contribution from SK-NIC as a result of the delayed completion of the acquisition. The company's agreement to acquire SK-NIC, the manager of the exclusive country code top-level domain for Slovakia, .SK., was announced on 25 Aug. CentralNic said that since then, further to continued negotiation, the structure of the SK-NIC acquisition has changed, with the previous asset purchase agreement lapsing, and a new share purchase agreement being entered into on 30 Nov. The SPA contains customary warranties and indemnities for a transaction of this type, and puts in place an arrangement which allows for any required recoveries under the SPA to be set off against the deferred consideration payable. The maximum total consideration for the acquisition remains unchanged at €26.12 million, however the initial cash consideration for the acquisition will now be slightly lower, at €20.27 million (previously €21.27 million), and the deferred cash consideration will now be slightly higher at up to €5.85 million (previously up to €4.85 million), and extended in time to cover a period until 2023. The deferred cash consideration is dependent on SK-NIC attaining defined growth targets over the next three years. CentralNic said the acquisition, on the revised terms, was expected to complete in the near future. Chief executive Ben Crawford said: 'The acquisition of SK-NIC is a major, earnings enhancing acquisition for the Group. 'Buying a country code top-level domain operator is always complex. 'We are delighted to be in a position to complete this acquisition, and have already progressed the integration strategy as previously announced.' At 9:28am: (LON:CNIC) Centralnic Group Plc share price was -0.5p at 63.75p Story provided by StockMarketWire.com

a d v e r t i s e m e n t